http://www.dailyreckoning.com.au/the-early-bank-catches-the-trade/2011/05/10/ After last week's slapdown I am starting to realize that the silver market will always be manipulated. The banks are in control and the silver price will only go up if they decide it will, and they will force it back down at their convenience. I am starting to see investing in silver at this point as similar to placing bets at a casino ... Tho at least a casino leaves a fraction of chance in the deal.
Mind you so are grain prices, entire national currencies by hedge funds (witness the Asian financial crisis), fuel prices at the pump (why does it all go up before each public holiday?), grocery prices (the Australian Grocery Duopoly) and the entire stock market by Goldman Sachs HFC computers. So are US presidential elections, so silver is just a face in the crowd when it come to duplicity.
It's a good thing to help your friends, right? When you become powerful and/or rich and you help your friends is that a good thing or corruption?
Knowing this is just the perfect scenario to add to the stack me thinks. When prices are climbing fast hold onto the fiat for a while or hedge it with higher risk stuff like PM miners etc. When the price tanks load up again (more) on real money.
I don't know, it depends on whether you think the rise in Silver prices is mostly due to supply and demand or speculation. COMEX changing its margin requirements could drive out some paper speculation, but won't really affect the physical market fundamentals. Banks and ETF managers don't have an infinite supply, and they can't outspend Chinese manufacturing forever. Again, as value stock market investors and Lovey80 say, market volatility can be your friend since you can get bargains (as a stacker) or make a killing (if you're flipping and think the nominal price will fall or we've passed the actual value of silver)
